Stamford Tyres : Annual Reports And Related Documents

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Form

Established in the 1930s with over 80 years of existence, Stamford Tyres has grown from a small tyre shop to a global distributor of tyres and wheels spanning over 90 countries and with our own wheel factory. In the course of our progress, the Company weathered and overcame cyclical business fluctuations, the Asian Financial Crisis of the 90's and the Global Financial Crisis of the millennium.

Our expertise lies in our international distribution competence, which we have expanded throughout the world. We also have regional retail operations as well as truck and off-the-road tyre management services. We have further expanded our capabilities in the manufacturing of alloy wheels and proprietary tyre brands contract manufacturing.

The Group's international distribution network currently spans across 9 countries in Asia Pacific, Africa and Australia. Our main business activities are in the distribution of major

international tyre brands - Falken, Dunlop, Continental and Maxam. We have also strengthened our product development capabilities and introduced innovative proprietary brands, Sumo Firenza tyres, Sumo Tire and SSW wheels, which are sold globally.

We operate the most extensive retail network in Singapore and Malaysia. Through our Mega Mart and Tyre Mart outlets, we offer a comprehensive range of products that include tyres, wheels, batteries and auto accessories. We also offer workshop and tyre services.

Stamford Tyres was listed on the Second Board of Singapore Stock Exchange (then known as SGX-Sesdaq) in 1991, and was upgraded to the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) in April 2003. Today, Stamford Tyres is one of the largest tyres and wheels distributors in South East Asia.

BOARD OF DIRECTORS

Executive Directors

Mrs Dawn Wee Wai Ying

Dr Wee Li Ann

Non-Executive &

Independent Chairman

Sam Chong Keen

Independent Directors

Leslie Mah Kim Loong

Kazumichi Mandai

Founder and Senior Advisor

Wee Kok Wah

AUDIT COMMITTEE

Chairman

Leslie Mah Kim Loong

Members

Sam Chong Keen

Kazumichi Mandai

REMUNERATION COMMITTEE

Chairman

Sam Chong Keen

Members

Leslie Mah Kim Loong

Kazumichi Mandai

Dear Shareholders,

Financial year 2022 was a challenging year. The Group started the financial year in the midst of the COVID-19 pandemic Delta variant outbreak, with social and movements restrictions and containment measures being increasingly imposed by the relevant authorities in key markets of the Group. The operations of the Group were also intermittently impacted by global shipping and supply chain issues in FY2022.

Against the above backdrop, the Group demonstrated strong resilience and adaptability by leveraging on its financial and sourcing advantages and taking measures to strengthen its inventory holding in anticipation of supply chain issues, particularly in the second half of FY2022. Despite the challenges and disruptions, the Group managed to generate S$190.3 million in revenue compared to S$189.6 million last year, with gross profit margin higher at 27.4% in FY2022 compared to 24.9% in FY2021.

In FY2021, the Group received government support through wage-related subsidies for some of its subsidiaries, amounting to S$1.5 million. These subsidies did not recur in FY2022. The Group took steps to manage costs and ensure costs containment measures remained in place. At the onset of the COVID-19 pandemic at the beginning of FY2021, the Board of Directors and senior management took a voluntary 20% pay cut and the managerial staff took a voluntary 10% pay cut. These voluntary pay cuts were in place throughout FY2022.

COMMITMENT TO THE GROUP'S STRATEGIES Having committed to its main strategy of brand and product diversification, the Group has added and continually adjusted its tyre brand offerings in response to changes in market demand. The Group is constantly expanding its sourcing advantage into its

key markets to build up a strong and comprehensive portfolio of tyre offerings, both for major brands and budget tyre brands.

Value-added services remain the other key focus for the Group. The Group is committed to providing timely response to changes in the market and customers' needs. These include the expansion of the Stamford Tyres Mart retail chain and the mobile tyre services to better reach-out to our end- customers which include our commercial and fleet customers.

Commercial fleet servicing markets such as in Singapore and Indonesia continue to be a focused growth area for the Group to expand upon its supply of total tyre management services, tyre retreading, specialized tyres for mining application as well as value-added services such as off-the-road tyre repair, vehicle inspection services and maintenance.

FINANCIAL STRENGTH

Despite the challenging operating environment, the balance sheet of the Group remained strong. The cash and cash equivalents of the Group as at 30 April 2022 were S$35.8 million. The Group's net gearing ratio as at 30 April 2022 was 0.5.

GOING FORWARD

The operating environment in the tyre business remains challenging as a result of intense competition and major geo-political and financial events globally.

APPRECIATION

I would like to take this opportunity to express our appreciation to the management and staff for their hard work, sacrifices and resilience, which enabled the Group to deliver a set of positive results in FY2022.

I would also like to extend our appreciation to Mr Wee Kok Wah, whose leadership and inimitable passion for the business were instrumental in building the Stamford Tyres Group from inception into the business that it is today. He has relinquished his Managing Director position since November 2021 to assume the role of Founder and Senior Advisor. He continues to provide invaluable guidance and counsel to the members of the Board as well as the management team.

I would like to thank the members of the Board of Directors for their commitment and valuable guidance during these challenging times. I am grateful to our customers, suppliers, bankers and business associates for their continued support and confidence in us.

Last but not least, I would like to thank our shareholders for their constant support throughout this challenging period.